Spreadex Market Update
Equities Shrug Off Hawkish Central Bank Backdrop to Focus On Better China Data
Equities Rally Despite Eurozone Inflation Rise
Equities markets saw broad gains yesterday. Despite sticky eurozone inflation data and a firmer Dollar, we saw most indices tracking higher through the session. The Nikkei is off to a flying start today, rallying more than 1% in response to data overnight showing that Tokyo CPI fell a full 1% from the prior month’s 40-year highs.
Better China Data Boosts Sentiment Further
US stocks were seemingly able to avoid crumbling on further hawkish Fed comments with both the S&P and the Nasdaq bouncing off the day’s lows to end the session in the green. The latest China services PMI data has also added to bullish sentiment. On the back of a bumper manufacturing reading earlier in the week, the services PMI was seen jumping to six-month highs, offering further endorsement for the Chinese recovery.
AUD Bounces Back
The better tone to risk sentiment today, as well as further strong data out of China, is feeding into higher demand for AUD ahead of the weekend. While the currency has seen plenty of selling interest over recent weeks, for now the decline has paused and bulls are looking to carve out a base.
Metals & Oil Rally on Friday
In the metals and commodities space, both gold and silver have been firmly higher across the European open on Friday. Gold is up now more than 2% off the week’s lows boosted by signs of a firm recovery in China which is good for demand. Crude prices are higher into the end of the week also. Better data out of China along with news of fresh production cuts in Russia is helping lift sentiment among crude traders.
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